Sacramento daily record-union. [volume] (Sacramento [Calif.]) 1875-1891, 1887-09-01

iel1eI upon the Commission, appointed by Con-
Sress IN this case than ii could have conferred
upon them for the Investigation of matters
between debtors and creditors. who are natural
persons, citizens of and residing within states.
UoIio Prlvate creditor authorize. or lawfully
MAKE a compulsory examination of the charac-
Yer provided for in this Act into the private
aitairs OF his debtor? or could Congress,
within state under its limited sovereign pow
ers IN q state, authorize a private creditor to
make such an examination of his debtors
a1lalrs ana call upon the Courts in like manner
~ cohpei answers Can a GOVERNMENT do for
,lseif, as creditor within State what il cannot
do Tor private creditorss If not and the priyil-
eyes OF the United States as creditors are not
enlarged by the charter because of their soyer-
eignty, upon what principle can the eompul-
soTy examination attempted to be authorized by
THIS ACT be sustairedf / can find none This
investigation, so far as the questions nm
ger consideration are concerned, is not
tof sovereign governmental purpose but
ior the purpose of further securing a pri-
vate debt, not yet matured, already secured
oy contract, acceptable to and accented by
the creditor at the time it was made And 1.-The
United States cannot any more than a state in
terere with private rights, except for legitimate
governmental purposes. They are not included
, wltndn tne constitutional prohibition which
prevents states from passing laws impairing the
oDligatlon OF contracts but equally with the
States they are prohibited from depriying per-
sons or corporations OF property without due
process OF law. 1hey cannot legislete back to
themselves, without making compensation, the
lands they have given this corporation to aid in
the construction OF its railrQad. Neither can
tney, BY legislation. compel the Corporation to
d'Scharge Its obligations in respect TO the sub
sldy bonds otherwise than according to the
terms OF the contract already made in that CON
nection. The United States are as much bound
by their contracts as are individuals If they
repudiate their obligations it Is as much repudi-
ALTON, with all the wrong and reprosch that term
implies. as It would be if the repudiator had
been state; or q municipality, or citizen. No
change can be made IN the title created by the
grant of lands or in the contract for the subsidy
BONDS without the consent of the corporation.
Al TINS is lnGisputable." CIhe Chief Justice in
the sinking Fund Com. 80 U. s.. 7l6-19l
THE RELATIONS OF THE PARTIES.
Having ascertaiued the relations Of the parties
70 each other to be that of contractors-that of
debtor and credito--by contract simply in the
same sense as if both were natural persons and
private citizens, the question arises as to what
authority Congress has, through Commissioners
appointed by it, 10 investigate the private affairs
OF mere contract debtor and ascertain what
ne has cone with his own money, or what he
proposes TO do with it-whether he is making
Iudicious investments of his money or not-aS
bearing upon his probability TO pay his debt,
some years III the future, when it shall nave
matured2
Mr.. Justice Field well said in the Sinking
Fund CAGES: =" W hen, therefore, the Government
of the United States entered into the contract
with the Central Pacific Railroad COMPANY il
could no more than private corporation or
private individual, finally cOnstrue and deter
mine the extent OF the companys rights and
liabilities. III II mad cause OF complaint against
the company IL could not undertake itself by
legislative decree to redress the grievances but
was compelled to seek redress, as all other civil
corporations are compelled through the judicial
tribunals If the company was wasting its
property, of which no allegation is made or
impairing the security of the Government the
remedy by suit was ample. To declare that one
OF two contracting parties is entitled under the
contract between them, to the payment of
greater sum than is admitted to be payable, or
10 other or greater security than that given, is
not legislative function. 1t is judicial action;
It IS the exercise OF judicial power-and all such
power, with respect to any transaction arising
under the Laws of the United States is vested by
u Constitution in the Courts of the country"
80 U. g., $3.50; see also authorities cited.1
do not understand that this doctrine is ques-
toned by the majority of the Court They only
differ as to Its applicability in that particular
case. do not understand that the Central Pa
cific Railroad Company is charged with viola
ton of any of the terms Of its contract unless it
be claimed that it has failed to pay over the full
amount OF percentage required by the contract
of the net earnings of the road. If it has failed
in this matter 1t Is not matter of any legal con-
Germ 70 the Government what the company has
done with its own. If it has failed in
for sustaining an action, the proper mode
of procedure for ascertaining the ruth
and enforcing the obligation, If violated is 10 in
tttute q suit alleging the facts and having an
and ajudgment for any amount withheld. If the
full amount has not been paid over. it matters
luL 10 lie government now the balance due mas
been expended. The company is liable like any
other debtor upon contract. and not o herwise.
But il it be desirable to trace it, and subject the
specific fund to the uses contemplated, and
there be sufficient grounds for SO doing
the Courts are the proper tribunals in which
to effect that object So. also, if there
be commission of waste upon the
property on which the debt is secured
the Courts afford the proper remedy by
a suit in equity 10 restrain the waste. These are
the means afforded by the Constitution and laws
fn arTxv aprssu
And there is now no different remedy provided
for the Government on It's contracts In such
proceedings there would be allegations, which
would INFORM the defendant what he is called
upon to meet
In the language cited by M Justice Field,
from case in the Supreme Court of Massa-
chusetts, :" like all other matters involving q
controversy concerning public duty and private
rights, 1t would in such proceedings be adj
JuNed and settled in the regular tribunals
"nere questions OF law and fact are adjudicated
on liked, established principles, and according
TO the forms and ussges best adapted to secure
the impartial administration of Justice go U.
D., 1ol.l bill of equity that seeks tC discover
upon general, loose and vague allegations is
styled a . fishing bill" and such bill would be
at once dismissed on that ground. (Sto. Eq Pl.
4oS-i and cases cited.) general rowing, off u
slve; inqnisitorial, compulsory, investigation,
conducted by Commission without any ale
cations, upon no fixed principles and governed
by no rules OF law, or of evidence. ana no Ie-
strictlons except its own will or caprice, is I'M
known to our Constitution and laws and such
an inquiSition would be destructive of the hts
OF the citizen and intoerable tyranny Let the
power once De established and there is no know
ing where The practice under il would end
The KILBoUEN CASE
These principles, it appears to me- are estab-
ished beyond further controversy in the case of
kilbourn VS. Thompson. I0S U. s., I6S at the
tune Of the failure of the bankers, Jay Cooke 4
Co, they were largely indebted to the United
States for moneys deposited by the Secretary of
the Navy with n branch OF the house in London
II WAS claimed that Jay Cooke d. Co were LARGELY
interested 10 company dealing in real estate at
Washington, known as the Real Estate Pool"
and that a considerable amount of their funds
was invested in that speculate, n. It seems to
have been claimed also that there was some
thing OF 4 nature OF trust in favor OF the Gov
eminent in the moneys of Cooke that had gone
into the pool. committee was appointed to
investigate the matter and trace the money,
with power TO send for persons and papers XII
bourn, supposed TO be one of the managers of
the pool, was summoned for examination He
refused 70 testify, Oh the ground that the House
had no authority in this manner to INQUIRE into
te private affairs of the debtors of the Govern
meut and others con pected with them. He was
thereupon, upon proceedings fos that purpose
committed by the House for contempt and held
in custody fOTty-hve days. After his release he
sued the Sergeaut-st-ArmS of he House and the
Investigating Committee for false Imprisonment
and received large judgment of 800 600, afler-
ward reduced to 5000, on the ground that the
House had no authority TO make n compulsory
investigation, to commit him for contempt
for the reason that these functions were
judicial in their nature over which the
Courts alone can have jurisdiction and this
Judgment as against the Serge aut alarms of the
House was affirmed By the Supreme Court In
the course of the decision the Court says "a If
the United states is creditor of any citizen, or
OF any one else on who y process can be served
the usual, the only legal mode OF enforcing paw
ment OF the deb. Is by resort to a Court OF JUS
tice. For this purpose, among others, Congress
has created Courts of the United States, aud Off
GERS have been appointed to prosecute the pleas
OF the government in these Courts" nO3 T. 5
lo2 Again, What was this committee charged
to dof To inquire into the nature ard history
OF TINS real estate pool How indefinite What
was the real estate pool7 Is it charged with any
crime or ofensef If so, the Courts alone can
punish the members of it. Is it charged with
fraud against the Government? Here again
the Courts, and they alone, can afford remedy
was 1t corporation whose powers Congress
could repealf There is no suggestion of the
KIND, Qb. 1857 Again, " III looking TO the
preamble and resolutions under which the COM
mittee acted, before which Kilbourn refused 10